IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: No inception date

Capital injection and equity stakes (including bailouts)

On 15 March 2016, three Polish state-owned energy companies PGE, Energa and PGNiG agreed to provide 1.5 billion PLN (ca. 350 million EUR) to the Polish Mining Company (henceforth: PGG).
The PGG was presented by the newly elected Polish government as a to-be-formed company that would take over all mines currently listed under the loss-making Coal Company ("Kompania Weglowa"). The transfer would likely take place on 1 May 2016, given that the Coal Company is predicted to remain liquid only until the end of April 2016.
PGE, Energa and a subsidiary of PGNiG shall contribute 500, 600 and 400 million PLN, respectively. In a joint press release, the three companies agreed to provide the funds to PGG under the following conditions:

  • a restructuring plan for the mines to be agreed;
  • the restructuring being accepted by the labour unions;
  • PGG accepting a business plan which would require no further recapitalisation until 2026 (the government assumes PGG to become profitable by the end of 2017 - while currently making a yearly loss of 1 billion PLN);
  • the European Commission assessing the refinancing to be compatible with EU's state aid law.

According to reports in the media, the provided capital would not suffice for a recapitalisation of PGG, as 2.2 billion PLN are needed.
The decision is part of an ongoing debate in Polish politics to save the loss-making mining sector. A similar recapitalisation effort was introduced (and later cancelled) by the previous government in September 2015 (cf. Related Measures).
The list of affected trading partners is based on 2014 trade volumes.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

110 Coal & peat
2701 Coal; briquettes, ovoids and similar solid fuels manufactured from coal.
270111 Anthracite
270112 Bituminous coal
270119 Other coal
270120 Briquettes, ovoids and similar solid fuels manufactured from coal

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